Airbus poised for take-off in Thailand's MRO hub

By SUPALAK GANJANAKHUNDEE  
THE NATION 
TOULOUSE, FRANCE

 

Airbus in Toulouse, France

 

UNCERTAINTY over the political situation in Thailand is apparently not shared by French investors in the aeronautical industry, who have expressed confidence in the Kingdom’s push to become a regional hub for aircraft maintenance, repair and overhaul (MRO).

 

European aircraft manufacturer Airbus, which first set up shop in Thailand more than 40 years ago, said the MRO sector offered enormous potential for the country’s aerospace business in the coming years.

 

France Airbus and national flag carrier Thai Airways International last June launched a joint venture for MRO facilities at U-tapao Airport, in a deal overseen in France by junta chief Prayut Chan-o-cha. Prayut is seeking to extend his tenure as prime minister after next month’s election. 

 

The MRO facility at U-tapao is part of the military government’s Eastern Economic Corridor (EEC) strategy and enjoys strong support from the business community, which has called for its continued rollout after the March 24 election.

 

“We are looking forward to the future as Thailand has good prospects and potential for [developing] the aeronautical industry, given its strong supply chain based on automobile and electronics industries,” said Sihasak Phuangketkeow, a former Thai ambassador to France in an interview with The Nation. Sihasak helped close the MRO deal last year and is now an adviser to the EEC project.

 

The MRO will be a key piece of the aeronautics industry in Asean, given that many airlines had bolstered their fleets with new planes in recent years and those aircraft now need maintenance, said Cedric Post, the French Aerospace Industry Association’s deputy director for European and international affairs.

 

Fast-growing budget airlines such as AirAsia and Vietjet continue to add aircraft, which will require maintenance and even overhauls in the next few years, added Post.

 

The in-service fleets in the Asia Pacific region will grow in size from 6,900 aircraft to over 20,000 in the next 20 years, according to Airbus.

 

 

While other Asean members including Singapore have been in the MRO market for a long time, there is still room for Thailand due to its strong automobile and electronics manufacturing base, said Post.

 

Singapore is short of land and costly while Thailand’s U-tapao Airport is large enough to serve current operations and expansion, he said.

 

The U-tapao MRO centre will be one of the most modern and extensive in the region, offering heavy maintenance and line services, said Airbus head of marketing for Asia and North America, Joost van der Heijden.

 

“We will incorporate the latest digital technologies, specialised repair shops and a maintenance training centre,” he added. “For Airbus, our MoU with THAI is about the opportunity to innovate and to lead the way in the aerospace sector.”

 

When fully operational, the U-tapao MRO centre is to offer heavy and routine (line) maintenance for all wide-body aircraft types, specialised repair shops including for composite structures, as well as extensive maintenance training courses for technical personnel from Thailand and overseas.

 

Airbus and THAI are still working on the final details of the deal, while already partnering to address the MRO requirements.

 

“This will be a major new facility that reflects our confidence in Thailand,” said van der Heijden.

 

Airbus and Thailand’s Civil Aviation Training Centre (CATC) in January signed an MoU on projects to develop and implement maintenance training and pilot training courses in the country.

 

The goal is to support the development of the country’s aviation industry by helping to ensure a steady supply of pilots, engineers and mechanics for Thailand’s airlines and MRO centres.

 

Under the agreement, Airbus and the CATC will deepen their cooperation in training aviation professionals within the country. Airbus has begun working with the CATC on basic maintenance training courses, which could be expanded and also include flight training courses for pilots.

 

“The main challenge [for the aeronautics industry] is to face the growth and train all required technicians and engineers. Airbus is confident that CATC, with Airbus assistance and cooperation, is able to address this challenge,” said van der Heijden.

 

The MRO centre is a major step forward for Thailand in the new-growth S-curve industries and its grand Thailand 4.0 strategy, Sihasak said, adding that the country’s next government needed a positive vision of its aerospace industry.

 

“We need good infrastructure, of course, for the future industry as well as consistent regulations to offer conducive conditions for investment,” he concluded.

 

Source: http://www.nationmultimedia.com/detail/asean-plus/30364304

 

-- © Copyright The Nation 2019-02-18

1 hour ago, webfact said:

Airbus and the CATC will deepen their cooperation in training aviation professionals within the country. Airbus has begun working with the CATC on basic maintenance training courses, which could be expanded and also include flight training courses for pilots.

So, they will need to train the Thais first. That's terrifying as Thais know everything already and can hardly be trained, especially by nasty farang. Terrifying that we could all be flying in planes serviced by Thais. 

9 minutes ago, Fex Bluse said:

So, they will need to train the Thais first. That's terrifying as Thais know everything already and can hardly be trained, especially by nasty farang. Terrifying that we could all be flying in planes serviced by Thais. 

Come come, why should you or anybody else be terrified of flying planes serviced by Thais?

Somchai has just bought a new screwdriver, and a 14 pound hammer.????????

17 minutes ago, Fex Bluse said:

So, they will need to train the Thais first. That's terrifying as Thais know everything already and can hardly be trained, especially by nasty farang. Terrifying that we could all be flying in planes serviced by Thais. 

So never flown local airlines or Thai airways?

1 hour ago, webfact said:

in a deal overseen in France by junta chief Prayut Chan-o-cha. Prayut is seeking to extend his tenure as prime minister after next month’s election

This report and this particular comment sounds awfully like an an electioneering announcement for the PM. Something that is not supposed to happen and not allowed by law while he is in caretaker mode.

Just wonder how much cheep P**y can affect that kind of weird decisions... But I guess Airbus is worth 100000 retirees and requires even if they come to Thailand for the same reasons.

44 minutes ago, colinneil said:

Come come, why should you or anybody else be terrified of flying planes serviced by Thais?

Somchai has just bought a new screwdriver, and a 14 pound hammer.????????

That's a bloody expensive hammer.

 

All very good for Thailand. Jobs and all that.

But maybe not the best move for Airbus.

Is Thailand the best place to come for cost cutting, time will tell.

Good luck. 

1 hour ago, RJRS1301 said:

So never flown local airlines or Thai airways?

Never

2 hours ago, webfact said:

...Prayut is seeking to extend his tenure as prime minister after next month’s election...

 

 

I was wondering why a news article about an agreement signed seven months ago, on 22 June 2018, appears today in a Thai newspaper, but the above excerpt from the OP explains it satisfactorily.

1 hour ago, Fex Bluse said:

So, they will need to train the Thais first. That's terrifying as Thais know everything already and can hardly be trained, especially by nasty farang. Terrifying that we could all be flying in planes serviced by Thais. 

Have to start somewhere. I don't suppose 'Western' countries would have been much good at producing an Airbus A380 in 1960.

46 minutes ago, KiChakayan said:

Just wonder how much cheep P**y can affect that kind of weird decisions... But I guess Airbus is worth 100000 retirees and requires even if they come to Thailand for the same reasons.

Zero.

 

It is about tax breaks, the local balance of available skills and labour cost, a country track record of having long-term industrial success, infrastructure and geopolitical economic strategy (soft power).

55 minutes ago, bluesofa said:

That's a bloody expensive hammer.

 

Yep  Why waste money. 

1 hour ago, Fex Bluse said:

So, they will need to train the Thais first. That's terrifying as Thais know everything already and can hardly be trained, especially by nasty farang. Terrifying that we could all be flying in planes serviced by Thais. 

The French and the Thai are both very bad in speaking english...i wonder how they are going to fix that.

 

1 hour ago, bluesofa said:

That's a bloody expensive hammer.

 

No no, the pound's gone down again today. It is 16 pounds now.

Edited February 18, 20197 yr by wgdanson

Scary thought.

44 minutes ago, mfd101 said:

Have to start somewhere. I don't suppose 'Western' countries would have been much good at producing an Airbus A380 in 1960.

False equivalence. Western countries would not have had the benefit of someone else with mastery teaching them - because they were pioneers.

 

37 minutes ago, fruitman said:

The French and the Thai are both very bad in speaking english...i wonder how they are going to fix that.

 

       

            Airbus , are pulling out of english speaking UK. 

              sawatdee kap, entente cordial , mon ami. 

 

3 hours ago, webfact said:

Airbus poised for take-off in Thailand's MRO hub

Airbus is not poised for take-off and neither is anything else in the Eastern Economic Corridor until the matter of the high speed train link-up between airports is confirmed. That has now stalled and come to a halt because one of the bidders want's the rules of the tender changed to something better suited to themselves. 

The Japanese have previously pointed out the shortcomings and lack of planning in relation to the EEC. Inadequate infrastructure within the EEC was just one of the deficiencies they mentioned. 

 

31 minutes ago, Fex Bluse said:

False equivalence. Western countries would not have had the benefit of someone else with mastery teaching them - because they were pioneers.

 

OK, but - at each stage of technical advance or at least change - they still had to build from what was there before. No different from here, except somewhere like 20-50 years behind the educational & skills game here (the quantity depending on the particular skillset).

21 minutes ago, mfd101 said:

OK, but - at each stage of technical advance or at least change - they still had to build from what was there before. No different from here, except somewhere like 20-50 years behind the educational & skills game here (the quantity depending on the particular skillset).

Yes, of course everyone must build from wherever they are. My point is that Thais are often arrogant and incompetent. As a national characteristic, they are fiercely proud people who don't seem to take advice from outsiders well. 

 

If they did, they might be where Singapore is or even Malaysia or Taiwan. They have not earned the arrogance they so often display as their record of contribution is low and their mistakes myriad. 

4 hours ago, webfact said:

France Airbus and national flag carrier Thai Airways International last June launched a joint venture for MRO facilities at U-tapao Airport, in a deal overseen in France by junta chief Prayut Chan-o-cha.

Good luck with a JV with Thai Airways

• posted a net loss in 2017 and a 14% decline in net profit for the January-March 2018 period. https://standbynordic.com/thai-reveals-plan-to-buy-23-new-aircraft/
• Thai Airways International and its subsidiaries posted a 29.8% drop in operating profit for the year to 2.9 billion baht (€76 million), despite the highest load factor for 10 years. https://standbynordic.com/thai-airways-profits-drop-30/

But perhaps Prayut reassured France Airbus that the Thai government will bail out state-owned Thai Airways et al so that it can meet its JV financial commitments, albeit at the cost of the Thai taxpayers who are supposed to be the recipient of EEC financial benefits.

4 hours ago, webfact said:

Sihasak helped close the MRO deal last year and is now an adviser to the EEC project.

Does now being an EEC advisor mean he negotiated his own compensation during MRO negotiations?

He should have been recused from employment for at least two years to avoid any perception of personal beneficial collusion.

5 hours ago, webfact said:

France Airbus and national flag carrier Thai Airways International last June launched a joint venture for MRO facilities at U-tapao Airport, in a deal overseen in France by junta chief Prayut Chan-o-cha

Blatantly wrong for the military to be involved in business. The military own the land and they now managing the lease. Just why are military land use for generating money and not for military purposes. So many wrongs.

3 hours ago, mfd101 said:

Have to start somewhere. I don't suppose 'Western' countries would have been much good at producing an Airbus A380 in 1960.

Maybe not,  they were to busy around that time with the design of the first super sonic passenger air craft then.

Think it had some name like Concorde. 

 

 

 

 

Edited February 18, 20197 yr by stanleycoin

 

4 hours ago, Cadbury said:

This report and this particular comment sounds awfully like an an electioneering announcement for the PM. Something that is not supposed to happen and not allowed by law while he is in caretaker mode.

 

The announcement sounded good last June......so let's make it again now.

 

 

3 hours ago, elliss said:

       

            Airbus , are pulling out of english speaking UK. 

              sawatdee kap, entente cordial , mon ami. 

 

And other news on the two deck 380. Stopping construction because no-one wants to buy them.

4 hours ago, fruitman said:

The French and the Thai are both very bad in speaking english...i wonder how they are going to fix that.

 

Who needs to speak English when you've got French work ethic combined with Thai efficiency.

22 hours ago, webfact said:

We will incorporate the latest digital technologies, specialised repair shops and a maintenance training centre,” he added. “For Airbus, our MoU with THAI is about the opportunity to innovate and to lead the way in the aerospace sector.

I hope they have good English teachers  ????

The message for those uneducated opinionated oafs above sitting on their barstools is that they should get out more: http://www.thaiwebsites.com/electronics.asp